Terms of Reference
The purpose of these Terms of Reference is to set out the basis on which you are to act as auditors & to clarify your expected responsibilities.
Objectives of the audit
The objective of the audit of Islamic Relief Lebanon Program is to enable the auditors to express an independent professional opinion whether the financial reports prepared are in all material respect, in accordance with an identified financial reporting framework. The phrases used to express the auditor’s opinion are to give a true and fair view.
The core responsibility of the audit firm is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing as set out by recognised professional accounting regulators.
Audit Methodology
The audit methodology and the audit techniques to be used are those in accordance with international auditing standards.
Substantive testing procedures encompassing the following should be applied:
Audit Scope
The audit should involve obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.
This includes an assessment of: whether the accounting policies are appropriate to the IRW and the charity’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements.
The scope of the audit should also cover the accuracy and completeness of the IRW consolidation schedule.
Management reporting
United Kingdom
Audit Opinion
The opinion on the financial statements should give a true and fair view of the state of the Islamic Relief Country’s affairs as at 31 December 2019 and of the incoming resources and application of resources, including the countries income and expenditure and cash flows, for the year then ended;
The opinion should also confirm that the financial statements have been properly prepared in accordance with Generally Accepted Accounting Practice.
4. IRW Consolidation
The IRW consolidation template must be signed by the following to confirm its accuracy and consistency with the audited trail balance:
1. Country Director
2. Country Auditor
3. Country Finance Manager
Audit Report and Management Letter
Audit Report
Management Letter
It is expected that Auditors will maintain an open communication approach the respective Finance Manager and Country Director and ensure that there is no surprises at the end of the audit course.
Reporting
The Audited Financial Statements and the Management Letter should be sent as soon as possible on completion to:
Country Director
Islamic Relief Lebanon
Requirements for Proposals from prospective auditors
The prospective auditor is required to submit its understanding about the audit scope, methodology, client resource base and professional fee.
Audit Tender
Islamic Relief’s main objective is to promote sustainable social development by co-operating with local communities through relief and development programs. Islamic Relief has implemented a variety of relief and development programs, as well as launching several emergency responses since its inception, this includes; working with IDPs affected by floods and conflict through emergency and Relief programmes. In the period to be audited, IR Country Lebanon implemented projects funded by ECHO, SIDA, DFID, WFP and UN among others.
Islamic Relief Lebanon is headed by a Country Director as the officer-in -charge with support staffs that include Head of Programme Human Resource Manager, Finance Coordinator, etc based at support office in Lebanon. The organization’s area offices are based in Lebanon, Beirut, Tawfic Tabbara Street, Tawfic Tabbara Center, 8th Floor and Saida as a branch office.
3 Auditors
Amongst the essential qualities Islamic Relief will consider are as follows:
Technical competency
Islamic Relief expects the auditors to have expertise in its area of charitable activity and being able to provide advice in specialist areas such as taxes, Payroll, NGO accounting and risk management.
Cultural fit
Islamic Relief expects the auditors that are appointed to understand and sympathise with the purpose, values and methodology of Islamic Relief.
Expertise and experience in the NGO sector
Islamic Relief is an International Relief and Development NGO, thus it expects its auditors to have NGO sector specialists within its audit team and an experience and portfolio of clients in the NGO sector.
Value for money
Islamic Relief expects its appointed auditors to be proactive in the relationship, sharing experience, knowledge and ideas so that the audit adds more value than just meeting statutory requirements.
Islamic Relief expects the audit to be cost competitive and balanced with a quality professional service. Islamic Relief will expect an open and clear approach to audit costs but will be considering overall value for money of the service provided in making its decision.
Partner and manager time
Islamic Relief expects in the proposal a realistic commitment of partner and manager time and consideration of how you will maintain consistent staffing levels.
Communication
Islamic Relief places strong emphasis on personal relationship and good communication. We hope that we can develop a free and open two way conversation including such areas as changes in accounting standards, fees, deliverables, timing of audit visits, staffing changes.
Risk based approach
We are also seeking to appoint auditors that take a risk based approach to financial audit and have an understanding of risk in a broader context than financial risks.
5 The financial and accounting year
Below are key dates in the accounting year for the preparation of accounts and audit reporting, we anticipate a similar pattern to each year in the future?
Islamic Relief
Financial year end
31st December
Draft accounts available for audit
20th Jan. 2021
Timing of the audit
1st Feb 2021
Draft Audit Report
25th Feb 2021
Final Audit Report
5th March 2021
Approval by Trustees
10st March 2021
The audit must be completed within the prescribed timelines above. The auditor must directly email IRW of any delays immediately on [email protected] [1].
This email is must be used by auditors only.
Your proposal should identify:
Your proposal should identify how you:
Your proposal should include separate estimates of your total audit fees for reporting:
In addition in your written proposal you should:
Your proposal should also contain details of other additional relevant services that your firm would propose to provide, but are not a necessary and integral part of the statutory audit, and where appropriate include these in the ‘additional services’ section in the three-year fee schedule.
Appendix I Consolidation Template
Appendix II
As part of your written submission you are asked to submit your proposed fees schedule for 2019
Audit review
2019
Islamic Relief
Lebanon
NB: the fees quoted should include all chargeable time, out of pocket expenses (e.g. travel) and be all-inclusive fee only.
Deadline of submission of Tender: 15.11.2020 at 13:00 Hrs.
Firms meeting the eligibility requirements below can contact the Procurement Department on 76111438 or 01748654, between 8:00 AM and 4:00 PM except weekend.
Eligibility Requirements
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روابط
[1] mailto:[email protected]
[2] https://daleel-madani.org/sites/default/files/calls_documents/audit_firm_tor_2019.docx